Govt no to zero-duty private wheat import

The government will not allow duty-free wheat import by private traders to increase the supply in open market.

"Private traders should not expect they would be allowed to import wheat at zero duty," official sources said, adding the government might consider giving some concessions to the user industries, but not duty free import.

At present, wheat import by private traders attracts a 50% duty. Private traders, including flour millers and wheat user industries have been demanding permission to go in for import to tide over the tight supply situation in the open market.

"We expect a supply shortage in next three to four months going by the current market availability of the commodity," a trader said.

The lack of supply will be even more severe during the festive season in September, the trader added.The shortage of 5-6 million tonne of wheat has forced the government to import 3.5 million tonne this year, after a gap of six years, to ensure adequate supply for public distribution.

Domestic production of wheat also got affected due to wide weather fluctuations during the early part of this year.

Industry feels another two million tonne of wheat will have to be imported this year just to meet supply shortfall in the open market.